Popeyes Faces Fierce Competition in 2022 for America‘s $10B Fried Chicken Market
Fried chicken has never been hotter. Analysts project the U.S. fried chicken market will swell to $9.8 billion by 2030, fueled by takeout and delivery demand. As chains aggressively battle for market share, Popeyes holds strong momentum but faces fierce competition.
Popeyes by the Numbers
Powered by game-changing menu innovation like its viral chicken sandwich, Popeyes has posted impressive growth:
- +30% sales growth in 2019-2020 1
- 3,400+ locations globally
- +200 net new U.S. restaurants in 2020 alone 2
But Popeyes still lags category leader Chick-fil-A in average unit volumes and must battle regional favorites across large swaths of its home territory in the Southern U.S.
Chick-fil-A: Size & Service Make It a Formidable Contender
The largest breaded chicken chain in the U.S. brings in 2.5x more revenue per store than Popeyes 3. With location count and sales still rapidly rising, Chick-fil-A shows no signs of yielding ground.
Notable advantages include its fanatical focus on customer service and operational excellence. Chick-fil-A tops Popeyes in critical metrics like drive-thru wait times 4. Tech investments to boost convenience and speed, like a new pilot delivery program, could further cement its status as category leader.
Our POV: Chick-fil-A has crafted an enviable competitive position, but demographics may be destiny. As America grows more urban, diverse, and secular, Popeyes cultural cachet and craveable innovative menu could ultimately prevail.
KFC – Innovation Pushes Back Against Popeyes Momentum
As of 2020, KFC still enjoys the #1 U.S. market share position in chicken-focused QSR with over 4,000 locations driving $4.56B in systemwide sales annually 5. Yet Popeyes outperformed with 30% growth from 2019-2020 vs. KFC‘s essentially stagnant results.
KFC is now on the counteroffensive. Parent company Yum! Brands is investing billions to remodel stores and build new tech-forward locations better suited to digital ordering and delivery across its brands. Popeyes would be wise not to underestimate the resources its far larger rival can pour into the brand.
Zaxby‘s & Bojangles – Scrappy (and Growing) Regional Chains
Popeyes faces its fiercest regional threats from southern favorites Zaxby‘s and Bojangles. Though still concentrated across the Southeast and South Atlantic states, both chains remain in aggressive expansion mode:
| Chain | 2020 U.S. Locations | Projected New Stores (5 Years) |
|---|---|---|
| Zaxby‘s | 900+ | +300 |
| Bojangles | 750+ | +150 |
Zaxby‘s positions itself as a "grown-up version of fast food" with an emphasis on quality and hospitality, while Bojangles remains laser focused on authentic southern flavor. Their continued growth chips away at Popeyes‘ southern stronghold.
Our POV: These scrappy regional titans represent a severe danger if they expand nationwide. They can attack Popeyes in its historical core markets while matching its cultural branding appeal.
Outlook: All Eyes are On Popeyes‘ Next Move
With U.S. sales of bone-in fried chicken expected to grow 20% by 2025 6, there is still plenty of market share up for grabs. But make no mistake – the competition is getting fierce.
After its chicken sandwich triumph, Popeyes holds both momentum and buzz. Yet rivals are responding quickly with their own innovations, aggressive pricing promotions, delivery partnerships, and tech upgrades.
To retain its newfound popularity, Popeyes needs to double down on risky menu innovation and not grow complacent. With smaller regional chains expanding nationwide and giants like KFC and Chick-fil-A investing heavily to accelerate growth, there is little room for Popeyes to stumble. The great fried chicken wars rage on.
